Itamar Medical Reports Record Fourth Quarter and Full Year 2020 Revenues
Itamar Medical Ltd. (NASDAQ: ITMR) reported a 31% increase in Q4 2020 revenues, totaling $12.8 million, driven by a 39% rise in U.S. WatchPAT sales to $10.2 million. The company provided 2021 revenue guidance of $52-53 million, reflecting 27-29% growth year-over-year. Despite revenue growth, the Q4 operating loss surged to $2.7 million due to rising expenses, including a 34% increase in selling and marketing costs. Non-IFRS net loss for the quarter reached $2.1 million. Itamar completed a $50 million public offering to enhance its growth capabilities and pursue strategic opportunities.
- Q4 2020 revenues increased 31% year-over-year to $12.8 million.
- U.S. WatchPAT revenues rose 39% to $10.2 million in Q4 2020.
- 2021 revenue guidance of $52M to $53M, indicating 27%-29% growth.
- Active WatchPAT ONE centers increased to 628 with a solid onboarding pace.
- Completed a $50 million public offering to support growth initiatives.
- Operating loss for Q4 2020 increased to $2.7 million from $0.9 million in Q4 2019.
- Gross margin declined to 69% in Q4 2020, down from 78% in Q4 2019.
- Net loss for Q4 2020 was $2.9 million, compared to $1.0 million in Q4 2019.
- Increased operating expenses, with selling and marketing costs up 34% in Q4 2020.
- Record Fourth Quarter 2020 Revenues Increase
- U.S. WatchPAT™ Revenues Increase 39% to $10.2 Million -
- Full Year 2021 Revenue Guidance of $52 Million and $53 Million -
- Company to Host Conference Call Today at 8:00 am ET, 3:00 pm IT -
CAESAREA, Israel, March 02, 2021 (GLOBE NEWSWIRE) -- Itamar Medical Ltd. (Nasdaq and TASE: ITMR), a medical technology company focused on the development and commercialization of non-invasive medical devices and solutions to aid in the diagnosis of respiratory sleep disorders, today reported unaudited financial results for the fourth quarter and full year 2020 and provided full year 2021 guidance.
“2020 was transformational for Itamar, both financially and operationally. Throughout the year, we saw significant momentum in each of our key long term growth drivers, including core sleep, cardiology and international expansion,” said Gilad Glick, President and Chief Executive Officer of Itamar Medical. “While undoubtedly COVID-19 provided an opportunity for a shift to home-based healthcare options, we believe that physicians and patients alike are recognizing the many additional longer-term benefits of home-based sleep disorder testing over in lab diagnostics. We were pleased to see the fourth quarter sales of our multiuse WatchPAT probes surpass pre-COVID levels and WatchPAT ONE, our fully disposable HSAT, reach a record high. Orders for our WatchPAT Direct service also continued to demonstrate meaningful growth above the trends we saw prior to the start of the COVID-19 pandemic.”
“In 2021, we anticipate continued revenue growth driven by our U.S. Core Sleep business and a return to pre-COVID level non-IFRS gross margin of approximately
Fourth Quarter 2020 Highlights, Full Year 2021 Revenue Guidance and Recent Achievements
- Revenues in the fourth quarter of 2020 were
$12.8 million , an increase of31% year-over-year (and increase of46% , excluding a one-time$1.0 million sale in the fourth quarter of 2019 to Kaiser Permanente).
- U.S WatchPAT revenues in the fourth quarter of 2020 were
$10.2 million, an increase of39% year-over-year (and increase of61% , excluding a one-time$1.0 million sale in the fourth quarter of 2019 to Kaiser Permanente).
- Active centers using WatchPAT ONE reached a total of 628 after continuing to onboard approximately 40 new customers per month on average throughout the fourth quarter.
- Completed an underwritten U.S. public offering in February 2021 with total gross proceeds to the Company of approximately
$50.0 million .
- Acquired assets of Spry Health providing opportunity to bring to market the first device for continuous Remote Patient Monitoring or RPM of sleep apnea.
- Full year 2021 revenue is expected to be in the range of
$52 million to$53 million , reflecting growth of27% to29% over full year 2020 of$41.0 million .
Fourth Quarter 2020 Financial Results
Revenues for the fourth quarter of 2020 increased
WatchPAT revenues for the fourth quarter of 2020 increased
U.S. WatchPAT revenues for the fourth quarter of 2020 increased
Gross profit for the fourth quarter of 2020 increased to
Operating loss for the fourth quarter of 2020 was
Non-IFRS operating loss for the fourth quarter of 2020 was
Net loss for the fourth quarter of 2020 was
Non-IFRS net loss for the fourth quarter of 2020 was
As of December 31, 2020, the Company had cash, cash equivalents and short-term bank deposits of
Full Year 2020 Financial Results
Revenues for the full year ended December 31, 2020 increased
WatchPAT revenues for the full year ended December 31, 2020 increased
U.S. WatchPAT revenues for the full year ended December 31, 2020 increased
Gross profit for the full year ended December 31, 2020 increased to
Operating loss for the full year ended December 31, 2020 was
Non-IFRS operating loss for the full year ended December 31, 2020 was
Net loss for the full year ended December 31, 2020 was
Non-IFRS net loss for the for the full year ended December 31, 2020 was
Conference Call and Webcast Information
The Company will host a conference call today at 8:00 a.m. Eastern Time, 3:00 p.m. Israel Time to review financial results and provide a corporate update.
To listen live via webcast, please visit https://www.itamar-medical.com/, or by clicking here.
To participate via phone, please use the dial in information:
U.S. toll-free: 833-519-1272
International: 914-800-3844
Israel toll-free: 1-809-315-362
Conference ID: 7976547
Please log in approximately 10 minutes prior to the scheduled start time. An archived webcast also will be provided in the Events and Presentations section of the Company’s website.
Use of Non-IFRS Measures
In addition to disclosing financial results prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB), this press release contains Non-IFRS financial measures for operating loss and net loss, which are adjusted from results based on IFRS to exclude: (i) share-based payments; (ii) depreciation and amortization of property and equipment and intangible assets; (iii) change in provision for doubtful and bad debt; (iv) expenses relating to reduction in manpower; and (v) gain from reevaluation of derivatives. Management believes that the Non-IFRS financial measures provided in this press release are useful to investors’ understanding and assessment of the Company’s performance. Management uses both IFRS and Non-IFRS measures when operating and evaluating the Company’s business internally and therefore decided to make these Non-IFRS adjustments available to investors. The presentation of this Non-IFRS financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. For further details, see a reconciliation of operating loss and net loss on an IFRS basis to a Non-IFRS basis that is provided in the table that accompanies this press release.
About Itamar Medical Ltd.
Itamar Medical is a medical technology company focused on the development and commercialization of non-invasive medical devices and solutions to aid in the diagnosis of respiratory sleep disorders. Itamar Medical commercializes a digital healthcare platform to facilitate the continuum of care for effective sleep apnea management with a focus on the core sleep, cardiology and direct to consumer markets. Itamar Medical offers a Total Sleep Solution to help physicians provide comprehensive sleep apnea management in a variety of clinical environments to optimize patient care and reduce healthcare system costs. The Company’s key product, WatchPAT, is commercially available within major markets including the U.S., Japan and Europe. Itamar Medical is a public company traded on the Nasdaq and on the Tel Aviv Stock Exchanges, and is based in Caesarea, Israel with U.S. headquarters based in Atlanta, GA. For additional information visit www.itamar-medical.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Statements preceded by, followed by, or that otherwise include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. For example, when we discuss the 2021 revenue guidance range, we are using forward-looking statements. Because such statements deal with future events, they are subject to various risks, uncertainties and assumptions, including events and circumstances out of Itamar Medical's control and actual results, expressed or implied by such forward-looking statements, could differ materially from Itamar Medical's current expectations. Factors that could cause or contribute to such differences include, but are not limited to, risks, uncertainties and assumptions discussed from time to time by Itamar Medical in reports filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC) and the Israel Securities Authority (ISA), including the Company’s Annual Report on Form 20-F to be filed with the SEC, which is on file with the SEC (accessible at www.sec.gov) and the ISA. Except as otherwise required by law, Itamar Medical undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Itamar Medical Investor Relations Contact (U.S.)
Leigh Salvo or Caroline Paul
Gilmartin Group
Phone: +1-415-937-5412
investors@itamar-medical.com
* The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.
ITAMAR MEDICAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
| December 31, | |||||||
| 2020 | 2019 | ||||||
| U.S. dollars in thousands | |||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 9,670 | $ | 15,115 | |||
| Short-term bank deposits | 30,000 | - | |||||
| Trade receivables | 8,354 | 8,384 | |||||
| Other receivables | 2,251 | 1,404 | |||||
| Inventories | 7,164 | 3,363 | |||||
| Total current assets | 57,439 | 28,266 | |||||
| Non-current assets | |||||||
| Long-term restricted deposits and prepaid expenses | 547 | 476 | |||||
| Long-term trade receivables | 412 | 156 | |||||
| Property and equipment | 2,904 | 1,472 | |||||
| Intangible assets | 1,037 | 395 | |||||
| Right-of-use assets | 1,801 | 2,442 | |||||
| Total non-current assets | 6,701 | 4,941 | |||||
| Total assets | $ | 64,140 | $ | 33,207 | |||
| Liabilities | |||||||
| Current liabilities | |||||||
| Short-term bank loan | $ | 5,000 | $ | 5,000 | |||
| Current maturities of long-term loan | 135 | - | |||||
| Current maturities of lease liabilities | 700 | 890 | |||||
| Trade payables | 4,418 | 2,028 | |||||
| Other payables | 5,973 | 3,455 | |||||
| Accrued expenses | 1,091 | 1,317 | |||||
| Provisions | 321 | 273 | |||||
| Short-term employee benefits | 354 | 352 | |||||
| Total current liabilities | 17,992 | 13,315 | |||||
| Non-current liabilities | |||||||
| Long-term loan | 154 | - | |||||
| Long-term lease liabilities | 1,380 | 1,708 | |||||
| Recognized liability for defined benefit plan, net | 271 | 260 | |||||
| Other long-term liabilities | 1,271 | 1,260 | |||||
| Total non-current liabilities | 3,076 | 3,228 | |||||
| Total liabilities | 21,068 | 16,543 | |||||
| Equity | |||||||
| Ordinary share capital | 1,140 | 878 | |||||
| Additional paid-in capital | 161,006 | 125,435 | |||||
| Accumulated deficit | (119,074 | ) | (109,649 | ) | |||
| Total equity | 43,072 | 16,664 | |||||
| Total liabilities and equity | $ | 64,140 | $ | 33,207 | |||
ITAMAR MEDICAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| U.S. dollars in thousands (except per share and ADS data) | |||||||||||||||
| Revenues | $ | 12,772 | $ | 9,765 | $ | 41,034 | $ | 31,258 | |||||||
| Cost of revenues | 3,933 | 2,115 | 12,323 | 6,984 | |||||||||||
| Gross profit | 8,839 | 7,650 | 28,711 | 24,274 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling and marketing expenses | 7,104 | 5,309 | 24,550 | 18,294 | |||||||||||
| Research and development expenses | 1,938 | 1,355 | 6,002 | 4,520 | |||||||||||
| General and administrative expenses | 2,452 | 1,863 | 8,503 | 6,354 | |||||||||||
| Total operating expenses | 11,494 | 8,527 | 39,055 | 29,168 | |||||||||||
| Operating loss | (2,655 | ) | (877 | ) | (10,344 | ) | (4,894 | ) | |||||||
| Financial income (expenses): | |||||||||||||||
| Financial income | 317 | 118 | 847 | 454 | |||||||||||
| Financial expenses | (622 | ) | (338 | ) | (1,315 | ) | (1,233 | ) | |||||||
| Gain from derivatives instruments, net | - | - | - | 442 | |||||||||||
| Financial expenses, net | (305 | ) | (220 | ) | (468 | ) | (337 | ) | |||||||
| Loss before taxes on income | (2,960 | ) | (1,097 | ) | (10,812 | ) | (5,231 | ) | |||||||
| Tax benefit (taxes on income) | 20 | 98 | (127 | ) | (37 | ) | |||||||||
| Net loss | $ | (2,940 | ) | $ | (999 | ) | $ | (10,939 | ) | $ | (5,268 | ) | |||
| Loss per share – basic and diluted (in U.S. dollars) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.02 | ) | |||
| Weighted average number of shares used in computation of loss per shares (in thousands): | |||||||||||||||
| Basic | 424,235 | 334,124 | 415,443 | 332,648 | |||||||||||
| Diluted | 424,235 | 334,124 | 415,443 | 346,195 | |||||||||||
| Loss per ADS (in U.S. dollars) | |||||||||||||||
| Basic | $ | (0.21 | ) | $ | (0.09 | ) | $ | (0.79 | ) | $ | (0.48 | ) | |||
| Diluted | $ | (0.21 | ) | $ | (0.09 | ) | $ | (0.79 | ) | $ | (0.49 | ) | |||
| Weighted average number of ADSs used in computation of loss per ADS (in thousands): | |||||||||||||||
| Basic | 14,141 | 11,137 | 13,848 | 11,088 | |||||||||||
| Diluted | 14,141 | 11,137 | 13,848 | 11,540 | |||||||||||
ITAMAR MEDICAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| U.S. dollars in thousands | |||||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||
| Net loss | $ | (2,940 | ) | $ | (999 | ) | $ | (10,939 | ) | $ | (5,268 | ) | |||||||
| Adjustments for: | |||||||||||||||||||
| Depreciation and amortization | 473 | 387 | 1,818 | 1,446 | |||||||||||||||
| Share-based payment | 452 | 373 | 1,495 | 1,259 | |||||||||||||||
| Change in provision for doubtful and bad debt | 116 | 157 | 322 | 349 | |||||||||||||||
| Net financial cost (income) | 72 | 321 | (145 | ) | 490 | ||||||||||||||
| Gain from reevaluation of derivatives | - | - | - | (442 | ) | ||||||||||||||
| Increase in trade receivables | (137 | ) | (2,426 | ) | (548 | ) | (2,097 | ) | |||||||||||
| Increase in other receivables | (304 | ) |
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FAQ
What were Itamar Medical's Q4 2020 revenues?
Itamar Medical reported Q4 2020 revenues of $12.8 million, a 31% increase from the previous year.
How much did U.S. WatchPAT revenues increase in Q4 2020?
U.S. WatchPAT revenues rose by 39% to $10.2 million in Q4 2020.
What is Itamar Medical's revenue guidance for 2021?
Itamar Medical's revenue guidance for 2021 is between $52 million and $53 million.
What was the operating loss for Itamar Medical in Q4 2020?
The operating loss for Q4 2020 increased to $2.7 million, up from $0.9 million in Q4 2019.
What was Itamar Medical's net loss in Q4 2020?
Itamar Medical's net loss for Q4 2020 was $2.9 million, compared to $1.0 million in Q4 2019.
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